When mortgage rates began to climb last year, many wondered whether the market would crash and send home prices tumbling. Now, more than a year later, we have an answer. Not only did the market survive the rate spike, it's currently enjoying a surprisingly strong spring selling season.
In fact, according to one recent analysis, home sales - though down from the heights reached during the pandemic – are now near their pre-pandemic norm. Additionally, home prices rose 1.4 percent from April to May, which was the largest monthly increase since last June and a bigger gain than over the same period in both 2018 and 2019.
Simply put, the housing market has shown resilience. Buyer demand has continued to outpace the number of homes for sale, despite affordability challenges and rate volatility. Of course, it remains to be seen whether the market will follow seasonal patterns this summer or break with its typical pattern. But so far this year, the housing market has remained resilient even amid challenging conditions.
[Source]
